Tariff Shock: Packaging Industry Pushes Back Against 50% Steel and Aluminum Hike
U.S. packaging manufacturers and metals industry leaders are sounding the alarm over President Donald Trump’s newly announced plan to double tariffs on steel and aluminum imports from 25% to 50%, set to take effect this Wednesday. While the move aims to bolster domestic metal producers, trade groups warn it could backfire, slashing supply chain stability and inflating consumer prices.
President Donald Trump’s newly announced plan to double tariffs on steel and aluminum imports from 25% to 50%.
1. Impact on U.S. Packaging Sector
The Can Manufacturers Institute (CMI) and the Aluminum Association (AA) have both voiced strong opposition to the tariff escalation, citing risks to food security, consumer affordability, and manufacturing resilience.
“Doubling the steel tariff will further increase the cost of canned goods at grocery stores,” said Robert Budway, President of CMI. “Millions of American families who rely on affordable, shelf-stable food will bear the brunt.”
Metal packaging giants like Ball and Crown have also flagged concerns since the original 25% tariff announcement earlier this year, noting the added pressure on already fragile pricing models.
Ball and Crown have also flagged concerns since the original 25% tariff announcement earlier this year.
2. Supply Chain Disruptions & Strategic Concerns
The 50% tariff affects a wide array of products, including tin mill steel, aluminum used in cans, caps, foils, and industrial drums. Many packaging producers source up to 80% of tin mill steel from abroad, as domestic production has dropped by 75% over the past eight years, according to Budway.
“This doesn’t hurt China — it hurts American canners,” Budway emphasized, calling for targeted relief on imports from trusted allies such as Canada and the EU.
Greif, a leading producer of steel drums, has activated an internal task force to manage the policy impact. “We’re assessing the implications and preparing adaptive strategies,” said Kim Kellermann, Greif’s COO.
3. Domestic Industry Needs More Than Tariffs
The 50% tariff affects a wide array of products, including tin mill steel, aluminum used in cans, caps, foils, and industrial drums.
The Aluminum Association acknowledged the administration’s intention to protect the U.S. metals sector but cautioned that tariffs alone won’t achieve long-term competitiveness.
“To grow domestic aluminum production, we need affordable energy and a full-spectrum industrial policy,” said Matt Meenan, VP at AA. “High blanket tariffs may alienate allies and weaken our supply chain.”
4. Global Trade Fallout
The European Commission expressed “strong regret” over the abrupt tariff spike and is preparing diplomatic measures to push back. Countertariffs remain on the table.
Followed by Packaging Dive
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